The website Voice of Europe translated a report from news website Samnytt.se: Sweden’s Parliament voted on the 13 of may to pay 21 million Swedish kronor (approximately 2 million euros) of the African nation of Somalia’s debt to the International Monetary Fund (IMF).
The vote was unanimously in favour of the proposition apart from the ten MPs from the Right-wing Sweden Democrats’ delegation, who all voted against it, according to Parliamentary record. You can find the proposal here.
Prior to the vote, Dennis Dioukarev, a Sweden Democrat MP representing Gothenburg, gave an address in which he questioned why the Swedish taxpayers’ assets should be used to pay off Somalia’s debt.
The Parliament’s decision was especially strange considering that the world is currently entering the worst economic downturn that it has seen in the last century as a result of the Wuhan coronavirus (COVID-19) pandemic.
“Could have gone to pensions, but Somalia is more important than old people who have worked all their lives and paid huge sums in taxes,” one critic of the decision commented on Twitter.
The payment will be made by Sweden’s Riksbank, which is the country’s central bank. The proposal submitted to the Swedish Parliament, which was been made available on its official website, justifies the move by claiming that Somalia has been unable to take out new loans from the IMF “for a long time” because the African country hasn’t been making its debt or interest payments.
However, this proposal makes no sense, as no later than last March, all the world debtor to Somalia erased a whopping 1.4 BILLION $ out of Somalia debt, erasing more than 67% of it. This news, quite unreported outside a few American sites, is however easy to find on the institutional portal, such as the IMF website. This erasure will bring Somalia debt to a total of $557 million in net present value terms, from $5.2 billion at the end of 2018, the IMF and the World Bank said.
This debt erasure is however just the tip of the iceberg: in 2014 (last complete number for Somalia), the balance of payment of Somalia was of a net loss of 11% of the GDP, and already of 5.2 billion $. Finally, in 2019, Norway made a bridge loan to Somalia of 3.2 NOK, loan that was finally magically forgiven on March the 5th, or better “reimbursed with the proceeds of a Development Policy Grant.” Arrears to various institutions were also reimbursed when, Italy and the UK did the same as Norway, and the loan was also magically forgiven. You see, Somalia is magic.
When Greece had financial problems, European and World institution destroyed the Greek economy just because, while, for third countries that produce literally nothing, it is okay to erase 90% of their debt. International institutions hate Europeans and do like to make us know.
The reason for this specific debt erasure from Sweden is quite simple. Somalis are one of Sweden’s largest invader communities. It has been estimated that there are currently 60,000 Somalis living in Sweden, many of them in Rinkeby, a Stockholm suburb which has been dubbed “Little Mogadishu.”